Tesla: So There Is Hope

Shares of Telsa (TSLA) have taken a tumble this year, as investors worry mount that it's facing a make-or-break moment, given its cash position and pressure to ramp up production, among other red flags.

Yet Robert W. Barid's Ben Kallo thinks that the market has gotten too bearish on the stock. The analyst reiterated an Outperform rating and $411 price target on the stock today, writing that he thinks investors should buy Tesla ahead of its first-quarter delivery update, despite the negative sentiment.

Naturally, the focus of the update will be Model 3 production rates at the end of the first quarter, but Kallo says he likes the setup going into the numbers given that expectations are low, given recent pessimism. In addition, he writes that even if the company hasn't reached a production rate of 2,500 Model 3s per week, he expects that it will soon--"within weeks."

Hence, he slightly tweaked his delivery estimates lower, but stands by his bullish stance on Tesla, as he thinks the stock will be rewarded if it can exceed the market's lowered expectations.

Last week, the stock got a boost from Chief Executive Elon Musk's new pay package.

Tesla is up 0.4% to $302.63 this morning.

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